U.S. Dollar under Pressure as Fed Considers More Easing

The U.S. Dollar is under pressure at themid-session as the Federal Reserve considers additional monetary policy easingamidst growing concerns the economic recovery is poised to derail.

The U.S. Dollar is under pressure at themid-session as the Federal Reserve considers additional monetary policy easingamidst growing concerns the economic recovery is poised to derail.

The Euro surged to the upside againovernight as investors shrugged off sovereign debt concerns in Ireland and Spainwhile choosing to focus on the weakening U.S. economy and the possibility ofanother round of quantitative easing by the Fed. Short-term oversold technicalfactors may be the only reasons for a near-term correction.

The British Pound is trading slightlybetter in choppy trading. The Sterlingposted a potential closing price reversal top on Tuesday after a Bank ofEngland official called for additional quantitative easing. The topping patternhasn’t been confirmed yet mostly due to the size of the Tuesday’s range.

The Japanese Yen is trading better but offits high. A better than expected Tankan report helped drive the Yen higherversus the Dollar, but investors expressed caution about the report since theforecast for December is indicating a weaker Japanese economy.

Investors are concerned that the Bank ofJapan may have to ease further at next week’s meeting since a weakening economywill mean the central bank’s forecast for a recovery next year may have to bereassessed.

The intraday trade this morning suggeststhat some traders are looking for another round of intervention ahead of nextweek’s meeting.